The Research On Internal Control Of Rural Commercial Bank Credit Service

The system of the rural economy has been deeply reformed in the past 30 years of Chinese economic reform.The rural economy was booming and developing rapidly in a short period of time.Rural commercial bank played an irreplaceable role in solving financial difficulty in the rural area and broadening the financing channel with promoting the rural economy,protecting farmers and supporting rural micro enterprise finance such as rural credit.However,with its scale enlarged,the management did not keep up with the development.The new system has not been established,causing that the rural commercial bank seems big but not strong.Especially in internal control,the relative recessive control mechanism has not been applied.The management and operation of bank mainly depends on the credit service.As the main asset of rural commercial bank,loans service is the main source of income of rural commercial bank.So for the whole rural commercial bank,how to make the internal control of credit service more effective,and reduce the credit risk to a minimum level,seems like a matter of life and death.In this paper,the research focuses on the internal control of rural commercial bank credit business.By collecting literature and summarizing research result,I summarized and concluded the basic theory on internal control of rural commercial bank credit service with taking the rural commercial bank of WM as an example.The paper generalize it into three steps:before loaning,lending loans,after loaning.I am going to analyze each control chain from the respective of control target,control risk and control activities.After understanding its loaning procedure,I am going to introduce two typical loan case and analyze its internal control rule and regulation.Based on the analysis of the whole the loan business of internal control,I want to conclude the defect of WM Rural commercial bank,and finally provide suggestion in order to be able to perfect their internal control and improve its ability to control the credit risk.In this paper,I tried to follow predecessors' steps in the following three aspects.Firstly,the Enterprise Risk Management Aligning Risk with Strategy and Performance(2016 Exposure Draft)has been released recently.In the fact that in view of the domestic research,this area is supposed to be devoted more and I tries to make some additions.Secondly,although rural commercial bank is providing rural financial services and playing a main part in supporting rural economic development,the present study of bank internal control was mainly concentrated on large and medium-sized state-owned commercial banks.The research on financial institutions for rural economy was seems not as much as it is supposed to be.Finally,previous research focused on the common issue but few concerning features,this article wants to take WM agri-businesses bank as an example and make some targeted supplement.